DianeW777
Expert Alumni

Get your taxes done using TurboTax

Yes, you enter the rent would prorate the real estate taxes and enter the appropriate amount in the rental activity by selecting 'Add an expense or asset' and then scrolling to find Real Estate Taxes (see below).

 

Please excuse the miss for the damages portion of the payment. The damages portion of the payment should not be income because it is a replacement of property that already existed. It assumes you use the money to put the property back to it's original condition. Either way, your cost basis will remain the same as your original cost and this portion of the payment is not income to you.

 

 

@sunnyx0r 

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